UK tax liability on a Norwegian state pension

I am currently in receipt of a small pension from Norway which was earned when I worked there in 1978/79. I am having 15% tax withheld by the Norwegian tax authorities on the pension received deducted at source. Having looked at articles 17 and 18 of the double tax convention between UK and Norway I am not sure whether or not I am liable for tax in Norway, the UK or both countries. I would welcome any advice in thie regard

I have noticed a thread 'Norway/UK Tax Treaty - reporting income to HMRC' posted by Thomas three months ago that is almost the same as my situation where it would seem from the resonses that I do not have to inform HMRC

Hi,

Norway has the rights to tax the pension as it derives form there and the UK will have the rights to tax you on your worldwide income. You can submit an exemption form so that it is only tax in the UK.

How to apply for a certificate of residence to claim tax relief abroad

Thank you.

Will the exemption form, once completed, be sent by HMRC to the norwegian tax authorities?

Please ignore my previous comment. I have been in touch with HMRC and am able to declare my Norwegian pension and obtain a foreign tax credit through my self assessment. Thank you for your help

Hi ,
 

No. It will be sent direct to you to then give to the Norwegian tax authorities. Thank you .

 

Hi I’m in a similar situation to Clive who posted earlier. We moved back to the Uk from Norway in 2022, l am due to receive pensions from Norway starting June 2025. I can claim tax emigration from Norway after 3 calander years of being none resident in Norway, so 2026. With tax emigration from Norway l would then pay 15% tax to Norway on my pensions. My questions. 1. If l claim tax emigration from Norway am l due to pay any tax to the Uk when paying 15% tax to Norway on my Norwegian pensions? 2. We may at one time return to Norway as my wife is Norwegian and our children and grandchildren are there, so it may suit not to claim tax emigration from Norway. If l do not claim tax emigration from Norway and pay the tax on my pensions to Norway am l liable to tax in the Uk on my Norwegian pensions? Thanks for any response.

Hi ,
 

If you are resident in the UK, then article 17 of the UK / Norway tax treaty, which covers pensions, would apply.  It states pension arising in Norway and paid to a resident of the UK, may be taxed in Norway.  You are also taxable on the pension in the UK, which you declare on a self assessment tax return.  The elimination of double taxation article (25) allows you to claim up to 100% foreign tax credit for the tax paid in Norway.  We cannot comment on the taxing of pensions in Norway.   See :  Double Taxation Convention between the United Kingdom and Norway signed in London on 14th March 2013  .  Thank you .

Thanks for getting back on this…. To clarify… Are you saying that if l paid 15% tax on the pensions in Norway l would then have to pay a further 5% to HMRC to make the tax deduction up to the Uk rate of 20%. After living in Norway for 25yrs l am not up to speed on HMRC and it’s methods, first time around l’ll probably have to go to an accountant, l have no clue how to file a self assessment tax return. Many Thanks

Hi,
Not quite.  You claim a foreign tax credit of up to 100% of the tax paid in Norway, where the UK tax payable on the pension is greater than the tax paid in Norway, or an amount equal to the UK tax payable on the pension.
Thank you.

Hi Just to clarify, l don’t want to misinterpret your words. I know l will pay 15% withholding tax to Norway, will l be credited that 15% paid to Norway when l put in my self assessment? I won’t be paying 35% total in tax, 15% to Norway and 20% to the Uk? They’re not huge pensions, it’ll be basic tax rate, approx £40.000 per year total. Many Thanks

Hi Oldmazda1997,
As a basic rate taxpayer, your tax rate will be a maximum of 20% - UK rate - so any additional tax due on the norwegian pension will already give relief for the foreign tax paid.
Thank you.